We broaden the existing empirical literature on environmental regulation and voluntary pollution abatement programs by testing the effects of implicit boycott threats and a firm's participation in a partnership program on its subsequent regulatory oversight using EPA's 33/50 program as a research experiment. Our results are consistent with the hypothesis of a preemptive self-selection to deter consumer boycotts. The findings also indicate that (1) predetermined corrective actions constitute a significant determinant of voluntary participation and (2) EPA reciprocated to voluntary participation by easing regulatory oversight on participants.
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number
21945.
Length: Date of creation: 2003 Date of revision: Handle: RePEc:ags:aaea03:21945
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